new o.s. correcting

Organizational Study @ KEL

CHAPTER 1 INTRODUCTION

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1.1. GENERAL INTRODUCTION:Organizational studies encompass the study of organizations from multiple viewpoints, methods, and levels of analysis. For instance, one textbook[1] divides these multiple viewpoints into three perspectives: modern, symbolic, and postmodern. Another traditional distinction, present especially in American academia, is between the study of "micro" organizational behaviour which refers to individual and group dynamics in an organizational setting and "macro" strategic management and organizational theory which studies whole organizations and industries, how they adapt, and the strategies, structures and contingencies that guide them. To this distinction, some scholars have added an interest in "meso" scale structures - power, culture, and the networks of individuals and units in organizations and "field" level analysis which study how whole populations of organizations interact.

1.2. OBJECTIVES OF THE STUDY: To study the organizational structure and functions of the company. To evaluate the performance of the organization. To understand various departments and their functioning. To develop an understanding on managerial practices followed in the organization. To be familiar with the practical aspects of functioning of the organization.

1.3. SCOPE OF THE STUDY:The organizational study helps to have a clear image on the structural and functional aspects of an organization. Since the company, KEL, is one of the major electrical sector firms in Kerala, the study bears wide scope. The scope of the study are: To have a clear idea on the functioning of KEL. To be familiar with the departments and organizational atmosphere of the company. To be aware of the rules and regulations of the company.

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To have a look at the expansion projects of the company.

1.4. METHODOLOGY:Methodology simply means the methods adopted for gathering information. Here two ways are used- primary data collection and secondary data collection. Primary Data Collection: Primary Data Collection means gathering data directly through interview and discussions with the employees and managers of the company. Secondary Data Collection: Secondary Data Collection is the way of gathering information indirectly that is from text books, journals, websites etc.

1.5. LIMITATIONS OF THE STUDY: Time limitation is the main factor as the employees are busy with their tight schedules. The confidential nature of the data is another hurdle. Lack of cooperation from the part of employees and management personal.

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CHAPTER 2 INDUSTRY PROFILE

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2.1. THE ELECTRICAL INDUSTRY:The electric power industry provides the production and delivery of electric energy, often known as power, or electricity, in sufficient quantities to areas that need electricity through a grid connection. The grid distributes electrical energy to customers. Electric power is generated by central power stations or by distributed generation. Many households and businesses need access to electricity, especially in developed nations, the demand being scarcer in developing nations. Demand for electricity is derived from the requirement for electricity in order to operate domestic appliances, office equipment, industrial machinery and provide sufficient energy for both domestic and commercial lighting, heating, cooking and industrial processes. Because of this aspect of the industry, it is viewed as a public utility as infrastructure.

2.2. HISTORYAlthough electricity had been known to be produced as a result of the chemical reactions that take place in an electrolytic cell since Alessandro Volta developed the voltaic pile in 1800, its production by this means was, and still is, expensive. In 1831, Michael Faraday devised a machine that generated electricity from rotary motion, but it took almost 50 years for the technology to reach a commercially viable stage. In 1878, in the US, Thomas Edison developed and sold a commercially viable replacement for gas lighting and heating using locally generated and distributed direct current electricity. The world's first public electricity supply was provided in late 1881, when the streets of the Surrey town of Godalming in the UK were lit with electric light. This system was powered from a water wheel on the River Wey, which drove a Siemens alternator that supplied a number of arc lamps within the town. This supply scheme also provided electricity to a number of shops and premises.

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Coinciding with this, in early 1882, Edison opened the worlds first steam-powered electricity generating station at Holborn Viaduct in London, where he had entered into an agreement with the City Corporation for a period of three months to provide street lighting. In time he had supplied a number of local consumers with electric light. The method of supply was direct current (DC). It was later on in the year in September 1882 that Edison opened the Pearl Street Power Station in New York City and again it was a DC supply. It was for this reason that the generation was close to or on the consumer's premises as Edison had no means of voltage conversion. The voltage chosen for any electrical system is a compromise. Increasing the voltage reduces the current and therefore reduces resistive losses in the cable. Unfortunately it increases the danger from direct contact and also increases the required insulation thickness. Furthermore some load types were difficult or impossible to make for higher voltages. Nikola Tesla, who had worked for Edison for a short time and appreciated the electrical theory in a way that Edison did not, devised an alternative system using alternating current. Tesla realized that while doubling the voltage would halve the current and reduce losses by three-quarters, only an alternating current system allowed the transformation between voltage levels in different parts of the system. This allowed efficient high voltages for distribution where their risks could easily be mitigated by good design while still allowing fairly safe voltages to be supplied to the loads. He went on to develop the overall theory of his system, devising theoretical and practical alternatives for all of the direct current appliances then in use, and patented his novel ideas in 1887, in thirty separate patents. In 1888, Tesla's work came to the attention of George Westinghouse, who owned a patent for a type of transformer that could deal with high power and was easy to make. Westinghouse had been operating an alternating current lighting plant in Great Barrington, Massachusetts since 1886. While Westinghouse's system could use Edison's lights and had heaters, it did not have a motor. With Tesla and his patents, Westinghouse built a power system for a gold mine in Telluride, Colorado in 1891, with a water driven 100 horsepower (75 kW) generator powering a 100 horsepower (75 kW) motor over a 2.5-mile (4 km) power line. Almarian

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Decker finally invented the whole system of three-phase power generating in Redlands, California in 1893. Then, in a deal with General Electric, which Edison had been forced to sell, Westinghouse's company went on to construct the Adams Power Plant at the Niagara Falls, with three 5,000 horsepower (3.7 MW) Tesla generators supplying electricity to an aluminium smelter at Niagara and the town of Buffalo 22 miles (35 km) away. The Niagara power station commenced operation on April 20, 1895. Tesla's alternating current system remains the primary means of delivering electrical energy to consumers throughout the world. While high-voltage direct current (HVDC) is increasingly being used to transmit large quantities of electricity over long distances or to connect adjacent asynchronous power systems, the bulk of electricity generation, transmission, distribution and retailing take place using alternating current.

2.3. THE ELECTRICITY SECTOR IN INDIA:The electricity sector in India supplies the world's 6th largest energy consumer, accounting for 3.4% of global energy consumption by more than 17% of global population. the Energy policy of India is predominantly controlled by the Government of India's, Ministry of Power, Ministry of Coal and Ministry of New Renewable Energy and administered locally by Public Sector Undertakings (PSUs). About 64.75% of the electricity consumed in India is generated by thermal power plants, 21.73% by hydroelectric power plants, 2.78% by nuclear power plants and 10.73% by Renewable Energy Sources. More than 50% of India's commercial energy demand is met through the country's vast coal reserves. The country has also invested heavily in recent years in renewable energy utilization, especially wind energy. In 2010, India's installed wind generated electric capacity was 13,064 MW. Additionally, India has committed massive amount of funds for the construction of various nuclear reactors which would generate at least 30,000 MW. In July 2009, India unveiled a $19 billion plan to produce 20,000 MW of solar power by 2022.

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2.4.PROSPECTS INDUSTRY

OF

THE

INDIAN

ELECTRIC/ELECTRONIC

Like every other industrial sector in India, the Indian Electrical/Electronics Industry too is slowly emerging from out of its "protective cover". For far too long has Indian Industry remained shackled and consequently inward looking. Over the past fifty years there was no exposure to global players and competition, with the result that the Industry grew up in a sheltered environment, dependent on the Government for everything, from licenses to protection to tariffs. Each one of these interventions was aimed at securing protection for oneself and ensuring growth of ones own organization at the cost of industry and the nation at large. Lack of global competition encouraged a cost plus approach, where every conceivable cost increase was passed on to the customer. There was thus no motivation to reduce costs. With de-licensing, decontrol and deregulation, Indian Industry has suddenly been exposed to global competition. Since last decade, India has witnessed what global players have achieved and what they are capable of achieving. We are becoming aware of competition on our turf. In this scenario, every company complains of increased competition, lower order books and shrinking margins. The Indian Electrical/Electronics Industry is of course further besieged by the fact that there is a dearth of business on account of lack of investment in the power infrastructure. Many organizations in this industry are looking overseas to develop the export markets owing to reduced demand at home. At the outset, it must be stated that the reduced domestic demand is at best a temporary phenomenon. The power sector in India is bound to grow and this will undoubtedly boost demand from the Utilities, quite apart from the industrial demand which will continue to grow with increased industrial output. The poor financial health of the SEBs is however a damper that cannot be wished away in the short term. This will continue to plague corporate in the Electrical Industry, until the SEB restructuring and unbundling brings a turnaround in the medium term.

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2.5. SEGMENTS OF ELECTRICAL AND ELECTRONICS INDUSTRYThe global electrical and electronics centres around various adjunct sectors. Few of them are Electronic Computers, Computer and Office Equipments, Telecommunications, Consumer Electronics as well as Industrial Electronics.

2.6. ELECTRONIC COMPONENTS INDUSTRYThis particular industry is engaged in designing, manufacturing, marketing, supporting, selling and distributing of broad range of electronic components such as bolts, clamps, fasteners, lighting, semi conductors, integrated circuits, microprocessors, cables and wires, switches, sensors, keyboards, sockets, sonar devices, test and inspection equipment etc.

2.7. FUTURE PROSPECTS OF INDIAN ELECTRICAL INDUSTRYThe domestic market in India is itself large and one must satisfy this market with products that meet international quality standards. With increasing Globalization every international player is now operating in India providing goods and services complying with international quality. Once we deliver high quality products and services within the domestic market, accessing the international market for exports should not pose a serious challenge. The Electrical and Electronics Industry in India is growing to its full potential in the coming years and no doubt that India will soon come to be recognized for quality products and services which in turn will bring this industry to a position of true leadership. Indian electrical industry has grown because of governments thrust on it and also due to overall economic growth. It has also reached a stage where the industry has demonstrated its capabilities. The industry has seen a growth of 20% and should continue at the same level for the next few years.

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2.8. FACTORS GOVERNING THE GROWTH OF INDIAN ELECTRICAL INDUSTRYEvery Industry thrives on some supporting factors. A few factors governing the growth of Electrical and Electronics industry are:

Research & development played an important role to the increased productivity and higher- value added electrical and electronics products.

Foreign investments accelerated growth in production and export as well. To expand their business, foreign companies have done huge investments which lead developing countries in establishing production units.

Global industry like Medical, Telecommunications, Industrial & Automotive industries have been cordially supported by electrical and electronics industry.

Increase in income changed living standards of the common mass. As a result, it increased the demand of electronics especially consumer electronics products globally.

Electronics and Electrical industry is highly fragmented which comprises of many small and medium size enterprises resulting into a huge industry.

Asia Pacific region is emerging as the most spinning place for the consumer electronics industry, as the markets remain still unbroached.

Innovation has played importantly in this industry. It led to a consistent demand for newer and faster products and applications.

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CHAPTER 3 COMPANY PROFILE

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3.1.KERALA ELECTRICAL AND ALLIED ENGINEERING CO.LTDEstablished in 1964 in the State of Kerala, India, the Kerala Electrical & Allied Engineering Co. Ltd. (KEL) is a multifaceted company fully owned by the State government. Through its five production facilities, located in various districts of the State, this ISO 9001: 2000 complaint company provides basic engineering services / products besides executing projects of national significance for high profile clients like the various defence establishments. The company manufactures and markets products like general purpose brushless alternators, brushless alternators for lighting and air-conditioning of rail coaches, medium power and distribution transformers as well as structural steel fabrications. The product categories for defence applications include high frequency alternators, frequency convertors, special alternators and power packs for missile projects. The power packs designed and supplied by the company for missile projects like Falcon, Prithvi, Trishul and Akash have been pioneering efforts. The company has also supplied special alternators to the Army and Air Force.The company's all-India marketing network with regional offices in all metro cities cater to major institutional clients like the State Electricity Boards, Indian Railways and various defence establishments besides the general market clients.

3.2. VISION:To be a globally recognized enterprise committed to enhancing stakeholder value by providing World Class Engineering and Power System Solutions

3.3. MISSION: Applying state of the art technology processes and innovative solutions.

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Building long term relationship with stakeholder in an environment of fair business ethics and values. Creating value through sustainable and profitable growth. Leveraging productivity through highly motivated and empowered team.

3.4. CORE VALUES: Fairness, transparency, integrity. Trust and Mutual Respect. Passion for professional and Operational excellence. Responsive and Courteous services.

3.5. DIVISIONS: 3.5.1. KEL STRUCTURAL ENGINEERING DIVISION:The Structural Division of KEL is in its Mamala Unit, specializes in the design, fabrication, and commissioning of hydraulic gates and hoists and their controlling equipment used in dams for power and irrigation projects. The KEL structural division has a capacity of 1200MT per annum undertakes the design and construction of steel bridges, factory buildings, storage tanks, fabrication of pressure vessels, and other industrial steel structures as per customer specification. For the Railways KEL undertakes the fabrication and manufacture of bogie frames, bogie bolster, head stocks for railway coaches and wagons.

3.5.2. KEL TRAIN LIGHTING ALTERNATOR DIVISION

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This ISO 9001 certified unit was initially started in the year 1964 imbibing technical know how from EVR of France for the purpose of manufacturing Statodyne brushless alternators used for lighting and air conditioning of Railway coaches. There are two divisions in this unit, namely Statodyne Alternator Division and Foundry Division. Statodyne Alternator division has an installed capacity of 3000 numbers of alternators per annum. There are more than 40,000 alternators in service with the Indian Railways alone. Foundry division has a capacity of 1200MT per annum and manufactures Spherodical Graphite Iron & Gray Iron Castings. This unit has fully mechanized moulding lines with sophisticated testing equipment to ensure quality castings. The unit also has 2*3t capacity Induction Furnaces. Indian Railways, BHEL, Crompton Greaves Ltd., BEML are some of the top customers of this unit.

3.5.3. KEL TRANSFORMER DIVISIONThe Transformer Division of KEL at Mamala, Ernakulam, was established in 1969, with the technical assistance of BHEL, to manufacture supreme quality transformers for various Electricity Boards, Government Departments, Public and Private Sector Companies. This division ISO certified by TUV, boasts of a long sustained list of extremely satisfied clients, many of whom who have stood by KEL, for decades. A fitting testimony to the trustworthy performer is the robust energy efficient transformers of KEL. Over the years, relying on the unmatched quality of KEL transformers, electricity boards across India perfectly maintain a healthy power distribution supply system. The transformer division with an annual production capacity of 6,00,000kVA soon after its inception, emerged as a major player in designing and manufacturing Distribution

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Transformers of rating upto 3000kVA, 33 kV class. Manufacturing custom- built transformers, for specific requirements, is yet another speciality of KEL.

3.6. UNIT UNDER REFERENCE: KEL, TRAIN LIGHTING ALTERNATOR DIVISION @ KUNDARA

3.6.1. PRODUCT RANGE: Inductor type brushless alternator for train lighting and air conditioning1kw to 40kw 12kw alternators specially designed for powering Janashatabdi Express

Trains of Indian Railway Induction type brushless alternator for automobiles and for charging

systems in diesel engines- 12 V, 24 V, up to 50 V.

High Frequency alternator 400 Hz up to 100 kVA Ground Power units for starting Avro and Dornier aircrafts and for

powering Boeing aircrafts. DC, AC power frequency and high frequency power pack for missile firing

auxiliary power support.

3.6.2. VISION:

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To achieve customer satisfaction by providing the right product and service at the right time, as per customer requirements.

3.6.3. MISSION: Ensuring team work at all levels. Establishing and maintaining vendor system and rating. Establishing and maintaining a quality system for meeting customer requirements. Continuous improvement through constant up gradation of technology process and skilled man power

3.6.4. EXPANSION PROJECTS: Brushless alternator for automobile. Nichel Cadmium Battery project with technical assistance from M/s Honda Denki of Japan Special Purpose Motor project in collaboration with M/s Elin of Austria.

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CHAPTER 4MIM PATHANAMTHITTA 17


ORGANISATIONAL CHART

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CHAPTER 5 DEPARTMENTSMIM PATHANAMTHITTA 19


1. Materials Management 2. Planning 3. Design and Development 4. Production 5. Quality Assurance Department 6. Marketing Department 7. Finance Department 8. Human Resource Department

5.1. MMD- MATERIALS MANAGEMENT DEPARTMENT

5.1.1. ABOUT THE DEPARTMENT:Materials Management means managing materials in an organization with the main objective of reducing the cost and efficient handling of materials at all stages and sections in an undertaking. It includes purchasing, storage, inventory control etc. This department deals with materials cost, its supply, utilization and handling.

5.1.2. POLICY:To establish and maintain the process for procurement of right materials and services from approved suppliers as per our requirement.

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5.1.3. OBJECTIVETo achieve 100% delivery To develop alternative sources at the maximum extend possible.

5.1.4. FUNCTIONS Procurement of required quality and quantity of materials at the best price for production as per design Maintain continuity of supply to ensure production schedule at minimum investment. Avoidance of duplication of materials leading to wastage of materials equipment. Creation of goodwill for the company through dealing with suppliers

GM

5.1.5.DEPARTMENTAL CHARTHOD

Assist. Manager(MMD )

Assist. Purchase Officer

Assist. Manager(Stores)

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Staffs

Staffs

Staffs


Fig.5.1

5.1.6. PURCHASING: a) Process Step:1. Receipt or PR 2. Emergency Purchase 3. Floating of Enquiry 4. Preparation of Comparative Statement and Purchase Committee approved. 5. Placement of Purchase orders

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6. Approval for necessary P.O. 7. Amendments and issue of P.O. 8. Outsourcing 9. Interaction with supplier on receipt of GRN 10. Disposition of non conforming products. 11. Bill passing, issue of debt credit notes, C forms.

b) Methods of Purchasing: Purchase by Requirements: Goods are used so frequently that they are not kept in stock in huge quantity. Such stock is purchased on monthly basis. Contract Purchasing: The contract for the future delivery that means buying a sufficient supply is even needs over a period of time. This type of supply is subject to review and cancellation with an appropriate period of notice.

c).Process control points:1. Production short fall due to shortage of critical items 2. On line delivery by suppliers

5.1.7. SUPPLIER REGISTRATION EVALUATION AND RATING a) Process step

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1. Issue of supplier registration forms to new suppliers 2. Receipt of filled registration form evaluation, trial order and approval. 3. Rating of suppliers 4. Intimating the supplier regarding performance and giving guidance for quality improvement. 5. Updating of approved supplier list

b) Process control points1. Improvement of delivery ready for suppliers 2. Number of newly developed suppliers

C) Purchase Procedure is shown below: Requisition from Store Enquiry Comparative Statement Purchase Order

Processing is done manually and hence time consuming. This is the main inadequacy found in this department.

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5.1.8. QUALITY SYSTEM PROCEDURE FOR PURCHASING:

Objective:To establish and maintain quality procedure for purchase of goods and services to ensure that all materials and services obtained from outside sources fully meet our requirements and those of our customers.

Scope:MMD function covers all materials and services used in production, installation, up gradation and development of technology and servicing of plant and machinery.

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5.2.

PLANNING DEPARTMENT

5.2.1. ABOUT THE DEPARTMENT:The Main functions of planning &dispatch department is to plan in advance how much of products need to be manufactured so that quality products can be supplied as per the requirements of the customers without any delay in supplying the products. The department bears all the responsibility for purchase of raw materials. They issue tenders, analyze quotations, and give approval for purchase. They keep a record of all these processes and monitor all the purchase activities and verify the qualities of raw materials with the help of Quality Assurance Department.

5.2.2. POLICY:

To establish and maintain the process for procurement of right material and services at right time from approved suppliers as per our requirement.

5.2.3. FUNCTIONAL OBJECTIVES:

1) To achieve 100% on time delivery by suppliers. 2) To develop alternative sources to the maximum extent possible.3)

To minimize the difference b/w d times that planned and achieved production.

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Organizational Study @ KEL 5.2.4.

DEPARTMENTAL CHART:

GM

HOD

Manager

AM1

APO

JO

AM2

Fig.5.2.

5.2.5. FUNCTIONS

1. Get information from marketing department about the orders received. 2. Analysis of orders & decide about when to start and how 2 start.

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3. Information is then passed to production department 4. Check whether materials are available in the store, if not then the information is passed on to materials department to purchase the materials.

5.2.6. PROCESS FLOW CHARTStart

Quarterly plan

Monthly plan schedule

Monthly production

Preparation of work orders & issue to various departments

Raising purchase requisition for a value items

Monitoring of production & analysis of short fall

Short fall if any Request for delivery periods ending to marketing department

Dispatch as per schedule MIM PATHANAMTHITTA 28 End


Fig.5.3 5.2.7. WORK INSTRUCTION FOR PACKAGING

1. Quality of the packaging case is assured as per carving.. 2. Check whether inspected seal is marked / punched before packaging the finished. 3. Compare and confirm the finished goods with delivery Chelan. 4. Use hoist while loading heavy items

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5.2.8. DISPATCH DEPARTMENTDispatch department is a part of planning department and all the particular activities relating to this department are controlled by the planning department.

A) POLICYDelivery of products in the right time.

Start B) OBJECTIVESEliminate wrong dispatches and reduce transit damages to 50 % within one year.

Checking, preserving & storage of finished goods

C) FUNCTIONS1. Checking of finished goods and storage.

Packaging and preservation Packaging of finished goods as per delivery 2.Checking chelan instructions3.Packaging of finished goods 4.Intimation for preparation of delivery Chelan 7 excise gate passes 5.Delivery of finished goods as per delivery Chelan as per delivery Delivery of finished goods 6.Collection of acknowledge delivery Chelan from consignee

chelan

D) FLOW CHART Collecting of acknowledgement copy of delivery chelan from consignees

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End


Fig.5.4. 5.3. PRODUCTION DEPARTMENT

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5.3.1. ABOUT THE DEPARTMENT:The main function of the production department is the creation of product or service required which is suitable for satisfying customer needs, wants and desires. The major product of the unit is Brushless Alternators used for air conditioning and lightening in trains. Main problem that KEL Kundara faces is that the freight charge of raw materials is high. KEL mainly purchases raw materials from France, Germany and from some other states in India. This will lead to the increase in the cost of production and there will be an increase in the selling price also.

5.3.2. POLICY:Right Product at Right Time Resulting in Customer Satisfaction through Team work.

5.3.3. OBJECTIVES: Right Product, Right Time and Customer Satisfaction. -Reducing the Rework or Rejection or In House Failure. Reducing Rework or Failures by 25% at each stage of production. Team Work. -Improving employee involvement and team work through generation of two suggestions and implementing a minimum of two improvement projects per year.

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5.3.4. PROCESS STEP: Ensure availability of material and allocates the work Receipt of material, tools, drawings. Projecting the requirements of measuring and test equipment. Production Process Review of non critical items found during process Offering for Inspection Issue of FGTN Return of excess material Production Monitoring Break Down intimation

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5.3.5. DEPARTMENTAL CHART

GM

DGM

Manager(W& A)

Assist. Manager(M/c shop FAB.,MNT)

Assist. Manager(FY& MNT)

F(REG)

F(M/c shop)

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Fig.5.5.

5.3.6. PRODUCT:The main product of the company is Brushless Alternators.

5.3.7. PRODUCT RANGE: Inductor type Brushless Alternator for train Lighting and Air Conditioning-1kw to 40 kw. 12 kw Alternator specially designed for Powering Janashadabthi Express Trains of Indian Railways. Inductor type Brushless Alternator for Automobiles and for Charging Systems in Diesel Engines- 12V, 24V, up to 50 A.

5.3.8. PRODUCTION PLANT:Production Plant consists of Foundry, Old Machine Shop(OMS), New Machine Shop(NMS). In Fondry the production of Alternator Pulley takes place. All the fabrication works, cutting and smoothening of product parts take place. The NMS covers the assembling, finishing and

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testing works.IN between OMS and NMS, there is a VPI area. The VPI stands for Vacuum Pressure Impregnation. Different Workshop involved in Production: Foundry Unit Fabrication Shop Old Machine Shop Winding and Assembly Regulator Section

1)Foundry: Foundry or Casting is the process of producing metal/ alloy compounds parts of desired shape by powering the molten metal/ alloy to cool & solidify. The solidified piece of metal alloy is known as coating. 2)Fabrication Shop: Activities here are plating, cutting, press work, rolling etc. 3)Machine Shop: The main works here are boring, drilling, grooving, turning, milling, grinding and balancing. 4) Winding and Assembling: The main activities here are phse coil field, cool winding, brazing preparation, paper cutting, varnishing and assembling of alternator components and finishing. 5) Regulator section: This is an independent division where electronic regulator for the alternator is prepared which is used for rectify and regulate the alternator current. The main parts of the product are Rotor(Rotating Part), Shafter(Stable Part), and End Shield.

5.3.9. PRODUCTION STAGES:

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Production of alternators comprises of two main stages: a) Component manufacturing b) Assembly, Testing and Finishing a) Component manufacturing: 70 % of the components used in alternators are made in the house itself. These can be classified into the following groups. Pressing and rolling parts Turning parts Tapped and drilled parts Welded parts

And the supplementary activities are as given below: Painting Tool room Electrical and Mechanical maintenance The Deputy General Manager is the head of the component manufacturing unit. The main activities of these sections are: 1. Press shop: infrastructure available in this section includes hydraulic pressure mechanical presses, rolling machines, shearing machines and press break. But many of the presses and shearing machines are old and need progressive replacement.

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Organizational Study @ KEL 2. Machine

Shop: The main works that takes place in this section are boring, drilling,

facing, centering, turning, balancing. Two machine shops are there, they are Old Machine Shop and New Machine Shop. Central lathes, Capstain Lathes, Radial Drilling Machines, Grinding Machines are being used here. 3. Fabrication Shop: The stator frames, the regulator boxes and terminal boxes are being fabricated here. Welding machines are used in this section. Grinding work is also done here. 4. Painting: The regulator boxes and terminal boxes are zinc plated after the pretreatment. The stator and pulleys are painted with enamels after surface treatment. The process is manual and conventional. For better consistency semi/fully automated painting system could be established.5.

Tool room: The tool room functions solely on the skill of the die makers. The tools are made by using conventional methods of hand- marking and filling. Modernisation has been kept abeyance due to scarcity of finance. Making of new tools for , replacing older ones takes long time due to the conventional technique of tool making. Accuracy also varies from person to person. Hence modernization of tool room should be speeded up.

Rotor- New Machine Shop Stacking(Lamination Works) Balancing. Assembling. Shafter-New Machine Shop

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Stacking. Winding. VPI Assembling End Shield-Foundry NMS Assembling. In Assembling stage all the parts are getting joined. Then the following steps takes place.

Assembling

Testing

Painting

Finished Goods Store

Dispatch 5.3.10. MAINTENANCEIn KEL, Kundara two types of maintenance teams are operating. They are mechanical and electrical maintenance. These teams are responsible for keeping up the plant and equipment in the company. Three types of maintenance are there in the company.

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Organizational Study @ KEL 1. Preventive

maintenance:

In preventive maintenance the staff ensure that the machine is being operated at the optimum possible condition. The various precautions that are taken by the staff are; a) Checking the amount of lubrication oil. b) Checking the various motors. c) Wear& tear check in gears and other moving parts of machines working of various switches. d) Maintenance of the various drive belts. 2. Breaking down maintenance: When the machine has some serious defaults them break down maintenance is done. This is done at the fastest possible place which affecting the smooth functioning of the operation of the company ensured by assigning a competent worker in dealing with the fault machine. 3. Predictive maintenance: In this type maintenance is done by filling gauge like devices which give an idea of the working of the machine. The maintenance may be either automatic as it is in the case of the pressure relief. Valve in air compressor or would have to be done manually like changing the lubrication oil within the time specified by the manufacturer of the machine. In the case of induction furnace a sharp rise in the temperature of the cooling water may indicate a broken or clogged cooling tube. This defect has to immediately sorted out to prevent the complete breakdown of the furnace.

5.4.

QUALITY ASSURANCE DEPARTMENT

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Organizational Study @ KEL 5.4.1.

ABOUT THE DEPARTMENTKEL has established documented implemented materials and continually improve its quality management system with the requirement of ISO 9001: 2000 by different processes involved in understanding the customer requirements, manufacturing and supply of products and after sales services as well as management process are identified and its sequence and interactions.

5.4.2. POLICY:Quality Policy of the Department is ensuring the quality of materials or components to the concerned areas for further processing.

5.4.3. OBJECTIVES: To assess the quality of the raw materials, semi finished goods and finished products at various stage of the production process. To see whether the product confirms to pre- determined standards and specifications and whether it satisfies the need of the customers. To suggest the suitable improvements in the quality of the job produced, without much increase or no increase in the cost of the production. To develop quality consciousness in various sections of manufacturing units. To reduce3 wastage of raw materials, men, machine during the process of production. Materials offered along with the GRNs will be inspected within ten days from the date of receipt of GRN. Reducing the defective materials returning from production to 50% within one year.

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5.4.3.a. DEPARTMENTAL CHART:

GM

Manager(HOD) QAD/ Testing/Store

Assist.Manag er(QAD)

Assist.Manag er(TEST)

Assist.Engine er(Store)

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Fig.5.6. 5.4.4. QUALITY MANAGEMENT SYSTEMThe Quality Management System Documentation includes: a) KELs state quality policy and the Quality Objectives. b) Quality Manualc)

Quality System procedure includes the six documented procedure required by 9001: 2000s i. ii. iii. iv. v. vi. Control of Documents Control of Records Internal Audit Control of non- conforming products. Correction action Prevention action

d) Drawing work instructions and check list e) Records.

5.4.5. QUALITY TESTING:Quality testing is QAD (Quality Assurance Department). Quality test is done at three stages. They are 1. Incoming Inspection Acknowledgement Receipt of GRN Verify GRN with Drawing/ P.O.

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Inspection of material and Record Data Indicate Status Record nonconformity(QAD) Return GRN to the Store 2. In process Inspection Offering material from production Inspection of material Indicating inspection and test status Maintain record of nonconformity Analysis of defective material referred from production.

3. Final Testing When materials arrive from suppliers it should have a test certificate certifying the quality of the product. In case of well known suppliers like SAIL the certificate is accepted and no further quality testing is done. In other vendors the testing is compulsory. The test conduct in the QAD has to meet certain criteria according to ISO 9001: 2000 regulations. When the materials fail to meet the criteria the whole is getting rejected.

5.4.7. QUALITY MANUAL:The Quality Management System is established, maintained and documented in a quality manual. It is developed as a policy manual to describe the quality management system followed in the organization. The Quality Manual includes: Quality Policy and Objectives

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sOrganisational Structure, Responsibility, Authorities and Scope. Reference to procedures and process maps. Sequence and interaction of the process.

Policy of the company regarding each process or activity.

The Quality Manual received and approved by GM for corrections and suitability to meet the organizational requirements.

5.4.8. TOTAL QUALITY MANAGEMENT A) Definition of Quality:Quality is defined as fitness of purpose and function as perceived by the customer. Quality is how well a product/ service meets customer expectations. Quality of a product/ service, in a long term is called reliability.

B) Total Quality Management:TQM has evolved as a Management philosophy that links quality to customer satisfaction. The evolution started in the 1930s, with the introduction of Statistical Quality Control and has since progressed with the addition PDCA cycle, Quality Circles, Demings points, ISO 9000, Quality Function Deployment. TQMsss requires the integration of company- wide effort in all phases from marketing, R& D, Procurement, Manufacturing, Inspection, Distribution, and Installation, and After Sales & Service.

C) Elements of TQM:The system elements of TQM are Customer Focus Management Commitment Total ParticipationMIM PATHANAMTHITTA 46


Systematic Analysis.

5.5. DESIGN AND DEVELOPMENT DEPARTMENT 5.5.1. ABOUT THE DEPARTMENT:Design and Development Department focuses on design the prototype of the products as per the specification of the customers so that the right product can be supplied to the customer at the right time without any delay. Technicians and draughts men who are there in this department helps to design d appropriate products as per d requirements of d customers.

5.5.2. POLICY:

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To establish and maintain a documented procedure for designing the right product in right time.This is achieved through continual improvement through constant technology upgradation and team work at all lev3els so that customer satisfaction can be achieved.

5.5.3. FUNCTIONAL OBJECTIVES:To design the alternators and its accessories as per design plan on receipt of the approved drawings or customer supplied drawings within the delivery period with zero design errors so that field failures are eliminated and by limiting the number of prototypes to be made before freezing the design as two.

The D& D Department activities are: Design and development of the prototype of the special alternators. Redesign of the components for quality improving/ cost reduction angles. Providing tests on samples submitted by the vendors for type approval.

Developing designs to cope- up with the specification issued by the Railways from time to time.

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General Manager

HOD Engineer Electronics

Draught s men

Draught s Operator

Compute r Operator

Technician on Charge hand Grade Helper

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Fig.5.7.

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5.5.5. PROCESS FLOW CHART

Tender Enquiry From Marketing Department

Feasibility Study

Order & Specification

Revie w Design Plan

Customer Feedback

Collection and Review of Design Output

Preparation of design output such as drawings, TDS, BOM etc.

Verification

Review of design output

Planning

Material s Prototype Manufacturing Verificatio n Validation Freezin g

Productio n

QA

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Fig.5.8. 5.6.MARKETING DEPARTMENT

5.6.1. ABOUT THE DEPARTMENT:The main target customer of Kel is the Indian railways. Marketing Department in kel need not use any marketing technique to market its products as kels service centers are located in all metropolitan cities.kel usually participate in open tenders and when railways invite tenders it is the sole responsibility of the department to purchase these tender documents and issue d sale order receipt to all other departments in kel, which ultimately results in the production of alternators regulators and pulleys as per d demand of the Indian railways.

5.6.2. POLICY:To provide customer satisfaction and confidence to the customers that quality is being maintained and will be continuously sustained in the delivered products by providing the right product at the right time.

5.6.3. OBJECTIVES:

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1) To meet customer need both stated and implied in order to maximize the order realization by 10% within one year. 2) To reduce sundry debtors by maximizing the collection. 3) Increasing the sales by minimum 10% by supplying the items in time.

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5.6.4. DEPARTMENTAL CHART:

GM

Manager(Marketin g)

Manager(After Sales and Service)

Manager(Sales)

AM- 1

AM- 2

AM- 3

Fig.5.9.

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5.6.5. PROCESS MAPEnquiry Purchasing of tender document Evaluation and Reviews Pricing Preparation of offer Submission of tender Tender opening Negotiation Preparation of offer for spares Follow up of orders Receipt of order review and acceptance Order enter Register Amendments from customer Production planning Issue of sale order and follow up Road permit/ octroi exemption Arranging inspection and preparation of delivery chellan Invoicing Collection of payments Management information Records After Sales

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Fig.5.10

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5.6.6. FUNCTIONS Receiving the tenders Execution Arrange inspection Dispatch to respect consignees Invoices are prepared Sent to payment authority Collection of payments

5.6.7. COMPETITORS

H.M.T.D., Chennai Stone India, Kolkata Press tech India Steasalite Ltd Unilec Crompton Greaves Ltd., Chennai

5.6.8. MAJOR CUSTOMERS

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Indian Railway Defence Application Air Force BHEL Bharat Earth Movers Ltd.

5.6.9. MAJOR PRODUCTS Brushless alternators Generator Sets Turbine Switch Gear Control Gear

5.6.10. PACKINGPacking is done according to the customer requirements. The packing materials mainly used are: Carton Wooden Gunny Bags Alternators in gunny bags specially made for it.

5.6.11. BRAND NAMEKEL is one of the most famous industry in this field which produces A products.

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5.6.12. THE MAIN REGISTERS USED ARE Tender Register Sales order Register Payment Register

5.6.13. AFTER SALES SERVICE Co-ordination with regional offices Making Report against customer returned goods Failure investigation and corrective action to be taken Arrangement of dispatch of rectified alternator to consignee Report regarding failure to management review committee

5.6.14. PROCESS STEP

1. Prevention Action Periodic visit to customers Intimation of design changes Training to customer

2.

Servicing

Customer complaints Warranty servicing and training

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Maintaining tools, instruments and spares

Maintaining calibration.

Documents maintained in After Sales Department: Failure Analysis Report and rectification details Customer feedback Quarterly report to Management Review Committee

5.7. FINANCE DEPARTMENT 5.7.1. ABOUT THE DEPARTMENT:The main function of the finance manager is to take finance decisions, which include investment decisions, financing decision, dividend decision etc. At the end of every year, finance manager is responsible for making the financial statements. To maintain all books of account up to date as per the statutory requirements and to maintain working capital,

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preparing of budgets, ensuring discipline in the case of financial resources preparation analysis the books of account.


GM

Assistant Manager

AAO

AAO

AAO

JO

Staff

Fig.5.11.5.7.3. THE MAIN BOOKS OF A/C MAINTAINED IN KEL ARE

Cash book Bank book Purchase register

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Journal register Payroll statements Central excise records

5.7.4. FUNCTION OF FINANCIAL MANAGER Formulating budget estimates in support of program objectives Presenting and justifying budget requests Development of plant for allocating resources Monitoring programme execution Reviewing and analyzing funding documents Conducting comparative analysis to examine trends Reviewing budget policy status to ensure compliance Reviewing and interpreting accounting and financial management policy, procedures, standards and status to ensure compliance Monitoring and examining accounts, specific appropriations or financial records for account status and reporting requirement and verifying accounts documentation

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Planning and conducting performance and financial reviews of major programmes and entities to evaluate the reliability, effectiveness, and efficiency of the organization documentation. Following up on recommendation to ensure implementation

5.7.5. SOURCES OF FUNDMain sources of fund are from Govt. and from banks. Mainly 5 banks that offer funds to KEL State Bank of India SBT State Co- operative Bank Federal Bank State Bank of Mysore

5.7.6. TERMS RELATED TO THE DEPARTMENT: A) Capital StructureThe debt equity ratio of the company was 0.42:1 in 2007-08 and 0.28:1 in 2008-09 and 0.19:1 in 2009-10

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B) Liquidity and SolvencyThe percent of current asset to total asset increased from 38.60 in 2007-08 to 29.16 in 2008709 and to 36.47 in 2009-10. The percentage of quick asset to Current Liabilities (excluding provision) varied from 143.41 in 2007-08 and 102.35 in 2009-10.

C) Working CapitalThe working capital (Current Asset, loans and advances less grade dues and current liabilities excluding provision for Gratuity) of the company at the close of the three years ended March 31st, 2009 amounted to Rs.250.92 lakhs, Rs.2623.21 lakhs, and 2316.12 lakhs respectively and represented about 5.93 months, 3.98 months and 5.05 months values of production at the cost during these years.

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5.7.7. THE PLANNING SYSTEM OF FINANCE DEPARTMENT

Mission

Goals Strateg y

Reseach & Developmen t Policy

Marketin g Policy

Producti on Policy

Personne l Policy

Financial Policy

Research & Development Budget

Marketin g Budget

Productio n Budget

Personne l Budget

Capital Budget & Financing Plan

Financial Plan

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Fig.5.12.5.8. HUMAN RESOURCE DEPARTMENT

5.8.1. ABOUT THE DEPARTMENT:The term personnel management has now been modified as HR management. But in KEL, they still follows the old term personnel management. The department controls all the employees of the company. There are about 349 employees, i.e, 260 workers, 40 officers, 49 staffs and nearly 100 apprentice and temporary workers. The department mainly focuses on training of employees, employee welfare and reducing of absenteeism.

5.8.2. POLICY:To achieve competency of our skilled manpower through constant training, education and experience in order to gain product quality.

5.8.3. OBJECTIVES:To reduce and train our skilled man power on a half yearly basis, at a rate of eight hours training per employee to upgrade the skill level and reduce the rate of absenteeism to 5% from 7% which will be measured on a monthly basis.

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GM

Manager(P&A )

Assist. Personnel Officer

Junior Officer

Time Keeper Security

Fig.5.13.

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5.8.5. FUNCTIONS: Man Power Planning Selection Placement Training and Development Performance Appraisal Transfer and Promotion Employee Welfare Administration Disciplinary Action Wage and Salary Leave Administration

5.8.6. RECRUITMENT: Internal In certain cases company conducts an internal notification for the higher post. The qualifications, experience, additional qualifications etc. required must be clearly specified in the notification. The internal recruitment is through promotion, only after considering the merits and performance of the employees. External In certain type, recruitment is done through KPSC. On the vecancies intimated very the management PSC advertises through the media inviting appropriate candidates. Then test conduct and the clerical and officer post appointments are done through this type.

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Direct On the basis of rules and regulations prevailing in this company, the management can recruit the technical hands such as unskilled workers, semi skilled workers and as supervisors. They are appointed as apprentice trainee. They are recruited employment exchanges. Sometimes securities are also appointed as direct recruitment.

5.8.7. TRAINING AND DEVELOPMENT: Induction The fresh employees and the transferred employees from other units must undergo this training. Training schedule is prepared by personnel department and directs employees to various sections or departments for training. Internal This type of training is given to technical persons working in various divisions. Apprentice training also given as part of internal training. Work rotations are another technique for internal training. External This is given to permanent employees such as engineers, officers, and other executives conducted by external agencies or external organization.

Management gives training for a period of one year for the fresh employees. After the successful completion of training he is recruited on probation and after this he is appointed in regular service. This is compulsory in the Company.

5.8.8. WAGE AND SALARY ADMINISTRATION:

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Wages: Wages depends on the long term agreement exist for duration of four years. Wages are fixed after bilateral discussion with trade unions and management. These wages are enacted only after the approval from the government. No profit sharing is there in the Company. Bt the employees get indirect benefits out of realized profit. Salary: Basic Pay+ DA+ HRA+ Allowance DA is based on the cost of living index at Kollam District. Department of Economics and statistics fix the index. Govt. fixes the index for officers. Allowance include washing allowance, risk allowance, heat treatment allowance, night shift allowance etc.

5.8.9. EMPLOYEE WELFARE:1) Statutory Employee Welfare Activities Medical Facilities Employee State Insurance Scheme Sickness Benefits Disablement Benefits Dependent Benefits Maternity Benefits Funeral Benefits Gratuity Provident Fund Bonus/Festival Allowance

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2) Non Statutory Welfare Activities Canteen Club Rest Rooms Ventilation facility for rooms Drinking Water Washing Facility

5.8.10. HEALTH & SAFETY:KEL provides high facility for health and safety of employees. Ventilation for each room, canteen, and rest rooms at convenient places and recreation club is also for functioning in here. For safety measures company provides shoes and socks once in a year for the relevant workers, uniform cloths to the workers once in two years. Goggles (protecting glasses) are provided to the welders and furnace workers.

5.8.11. DISCIPLINARY ACTION:The company usually takes disciplinary action against, Disobedience Fraud Theft Dishonesty

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Illegal Absence The major disciplinary action they adopts are, Warning Memos Wage and Salary cut

5.8.12. LEAVE STRUCTURE:

Casual leave- 14 days

Privilege leave- 30 days

5.8.13. TRADE UNIONS Security Administration Housekeeping and Cleaning of Premises Certificates from Municipalities Pollution Control Board

5.8.14. PROCESS STEPSStart

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Identification of training needs

Construction of the panel of training

Preparation of internal and external training schedule

Approval for external training

Training to GM Training to senior level managers, middle level managers and supervisors

Training to staffs and workers

Induction training to freshers

Training to service engineers and technicians Training to customers

Training evaluation- officers level Training evaluation- staff level End

Fig.5.14.

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CHAPTER- 6 SWOT ANALYSIS

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6.1. STRENGTH

Good brand image- KEL product has a good brand image in the market which is helpful to maintain the customer base.

Good customer relation- The Company maintains a good customer relation especially with Indian Railway which is the major customer of the product.

KEL got ISO 9001: 2000 certifications for the better quality base of the product. The company offers after sales service at various metro cities which is helpful to increase the market range.

KEL is having a highly developed quality control division. Intensive training programme for employees and employers.

The major strength of KEL is that it is fully equipped to manufacture brushless alternators right from basic raw materials without depending on external sources.

6.2. WEAKNESS

No ERP systems are adopted. Lack of Computerization and information technology application cause delay in functioning of the company.

Being a public sector company a lot of political interference is found which affect the functioning of the company. The rate of absenteeism is very high and that negatively affect the productivity of the company.

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6.3. OPPORTUNITIES Scope for seeking a globalised market through export. Can develop more E-business application Can develop more potential markets Highly Developed Technology can be used for more quality based products. Can tie up with other companies like BHEL.

6.4. THREATS

Increasing price of raw materials- The price hike of raw materials negatively affect the production of the company.

As the company is run by the government, the financial support is very low.

The company mainly depends only on one major customer, that is the Indian Railway. Major threat faced by the company is high Competition in the market.

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CHAPTER- 7 FINDINGS AND SUGGESTIONS

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7.1. FINDINGS:The major findings of the study are: The major players of the market in alternator segment are Stestalite, Stone India.

The main factors which affect the sales of alternator are performance, technological upgradation, less maintenance and after sales & services.

Most of the purchase decisions are made on the basis of evaluation made by the prospective customers regarding the pros and cones of each brand.

Service network plays an important role in developing the image and reputation about a particular company and its products. The prospective customer of the alternator is Indian Railway. Hence KEL has to keep the price to competitive level. This is an area where KEL is facing difficulty. KEL succeeded in positioning its product as durable and reliable one.

7.2. SUGGESTIONS:Some suggestions to give are: The Company should adopt more Management Information System.

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More marketing techniques should be followed.

Collaboration or tie up with other financially sound companies can give more bases.

Product Diversification will give the company more stands to withstand. Salary, Wages and other welfare should according to the performance

CONCLUSIONMIM PATHANAMTHITTA 82


CONCLUSION

KEL is a public sector company started in 1964 and the company has the customer base of Indian Railway. The main product of the company is brushless alternator. The company has four units and the head office is in Kochi. The Kasargode unit of the company has recently taken over by BHEL. The company is not profitable because of the increasing price of raw materials and competitors. The product quality is very high and the company has the ISO 9001: 2000 certification by TUV norda.

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BIBLIOGRAPHY Text books:

T.N. CHABRA (Human Resource Management 2nd edition, 2004, Himalaya Publishing House, New Delhi). KOTLER PHILIP;KELLER KEVIN(Marketing Management, Pearson Education) ARUN KUMAR AND MEENAKSHI, (2006), - marketing management, second edition, Vikas Publishing House Pvt Ltd Newdelhi.

KOTHARI.C.R- Research Methodology methods & techniques ASWATHAPPA K- Human Resource & Personnel Management

New Age International Publishers, 2004.

Tata McGraw Hill Publishing Co. Ltd., 1999.

PANDEY I.M -Financial Management Vikas Publishing House Pvt Ltd, 2000.

Manuals: Annual Report 2009- 2010.

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Organizational Study @ KEL Company

Report.

Departmental Report.

Websites:

www.kel.org www.kirlosker-electric.com www.cgglobal.com www.stoneindia.co.in

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new o.s. correcting

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